Resort Business Plan: What it is and How to Write it

A resort business plan is a roadmap that presents an overview of your resort and lays out future growth plans. It is a strategic document that defines your vision, unique selling proposition and target audience. A resort business plan provides a financial forecast to help you allocate resources efficiently and steer clear of financial pitfalls. Writing a resort business plan requires thorough market research as well as being clear about the reasons for writing the plan. A resort business plan is not similar to a hotel business plan as they do not have the same elements.A resort business plan is 15 to 25 pages long and is written by business plan writing companies.

What is a Resort Business Plan?

A resort business plan is a comprehensive document that outlines your resort business goals and  your strategies for reaching them. It includes information about the resort’s target market, management team, marketing plan as well as financial projections.

A  business plan for a resort provides a snapshot of your resort and lays out your plans for growth.It serves as a roadmap for turning your dream resort into reality.

The business plan guides you through the hospitality industry’s complexities ensuring that your resort business stands out  in the competitive landscape. It helps you as the business owner understand the business and make sound decisions.

A resort business plan outlines how the resort business will operate ensuring that your business is well planned. 

What is the purpose of a Resort Business plan?

The main purpose of a resort business plan is to document the  goals and objectives of your resort business as well as strategies to achieve them. It helps you set tangible goals and objectives so that you strive to achieve them over a period of time.

A resort business plan provides you with an accurate financial forecast which you will use to track your progress regularly. Tracking the financial performance of your resort ensures that it remains profitable with enough finances to sustain its operations.

Investors and lenders will need to see your resort business plan when you seek funding before deciding whether to invest in your resort or not. Ensure that your resort business plan showcases good financial health and use accurate financial projections.

Elements of a Resort Business Plan

Elements of a resort business plan refer to items that must be included in a resort business plan. The items form the structure and the makeup of the plan.

The elements of a resort business plan guide the steps to be used when writing it and represent  the sections of your plan. They include the resort executive summary, company description, industry analysis, customer analysis as well as a competitive analysis. Other elements include a marketing plan, operations plan, the management team, financial plan as well as the appendix. 

How to Write a Resort Business Plan

Writing a resort business plan is a step by step process which requires you to first know the purpose of your plan. Be clear in your mind about whether you are writing it to align teams, attract investment or provide direction.

Identify your audience to whom you are writing the resort business plan such as customers or investors.   Let your passion for your resort business shine through by showcasing your enthusiasm for your business in the company description.

Conduct research on the resort industry to ensure that all necessary elements are accounted for. Reiterate differentiating factors that sets apart your business throughout the plan by clearly demonstrating the points of difference.

Write the Executive Summary

The executive summary is the first section of your  resort business plan and presents an overview of the entire business plan. It should provide your business plan readers with a clear understanding of your resort’s goals, objectives and how they will be achieved.

The goal of the executive summary is to quickly engage your business plan reader explaining to them the kind of resort you are running. Introduce your resort business by including its name, location, the type of resort business and when it was founded. Summarize your market research and highlight the opportunities in the market and how your business will fill the gap.

Briefly highlight the resort facilities that you will offer as well as your unique selling proposition. Outline your sales and marketing strategies and briefly summarize your financial projections.

Write a Company Description

A company description of your resort business plan provides detailed information about your business. Describe your resort business from the name, location, history, structure and future goals.

On matters of location outline reasons as to why the particular location was chosen. Describe what type of resort you run be it a beach resort, mountain resort or luxury resort.

Describe the legal structure of your resort whether it’s a sole proprietorship, partnership or LLC. List the names of the owners and founders, describing the shares they own as well as their responsibilities. Summarize the objectives of your resort, core principles and values in your mission statement.

Complete Industry Analysis 

An industry analysis provides an overview of the resort industry to help you understand the market in which you are operating. It helps you develop effective marketing strategies especially if the analysis identifies market trends.

Give an industry overview by defining the resort industry, discuss its history and how it has evolved over the years. Mention the current size of the industry as well as the current trends such as technology and theme preferences. Provide statistics on the local and global resort market and include growth projections for the next three to five years.

Outline the  laws and regulations that affect the resort industry and explain how your business will be compliant. Discuss the barriers to entry of the resort market such as significant capital requirements and explain how your business plans to overcome the barriers.

Conduct Customer Analysis

The customer analysis element of your resort business plan details the customers you expect to serve. Your resort business will target business, domestic or international leisure travelers. Break down your target customers into segments based on their demographic and psychographics characteristics.

Demographic features include age, gender income levels and location while psychographic profiles include the needs and wants. The more you recognize the wants and needs the better you will do in attracting and retaining your customers. Conduct a  customer needs analysis to discover the needs of your customers as well as what drives them to make a purchase.

Write Competitive Analysis

A competitive analysis identifies and analyzes your direct and indirect competitors. Your direct competitors are other resorts while indirect competitors are other options such as hotels and airbnb.

Document the strengths and weaknesses of each of them and describe what differentiates your resort from them. Find out the customers they serve, the type of resort that they operate and their pricing. Document your competitive advantage for example provided extended stay options or better pricing. 

Write the Marketing Plan

The marketing plan of a resort business plan should include the product, price, place, people and promotions. It focuses on customer acquisition and retention and should thus be specific and realistic. In the product section, reiterate your type of resort and detail the particular products and services that you offer such as accommodation and  meals.

In the price section, outline your offer prices and how they compare to your competitors. Document the location of your resort and mention how the site is a catalyst to your success. For example, being situated in a busy tourist town or  near a tourist attraction site. Discuss how you will drive customer traffic to your resort such as reaching out to websites, email marketing, advertising on social media or through local newspapers and magazines.

Write the Operations plan

The operations plan of your resort business plan outlines the processes, procedures and systems involved in the operations of your business such as staffing. The components of your operations plan helps lay out your resort operations to manage your business effectively. 

Mention your staffing requirements including the number of employees, chefs, their qualifications and their responsibilities. Outline your operational processes such as housekeeping, maintenance, customer care, sales and marketing.

List your equipment, and machinery such as  vehicles, cooking equipment  and recreational activities equipment. Include the technology you will be using such as accounting softwares and explain how the technology helps you maintain quality standards. Additionally, include a list of suppliers that you would want to work with, their pricing structure  and services. 

Explain the Management Team

The management team element of your resort business plan overviews your resort’s  management. Introduce your management and key members of your team explaining their roles and responsibilities.

The roles of the managers in your resort include overseeing the activities of other employees, evaluating and hiring new employees and ensuring that your business is on track to meet its goals. Mention the key executives, senior managers as well as departmental managers and include their education background and industry experience.

Explain your management team’s organizational structure including the decision making hierarchy and reporting line. Describe the compensation of your resort staff such as salaries and other benefits. Explaining your management team demonstrates that your resort has a qualified team to grow and succeed. 

Write the financial plan

The financial plan of your resort business plan gives a summary of the financial projections of your business. Include an income statement which describes projected revenue, operational and service costs to determine the expected net profit of your business.

Create a balance sheet documenting the business’ assets, liabilities and equity. Prepare a cash flow statement which projects the cash inflows and outflows such as invoices, payment receipts or loan payments. Determine the break even point of your resort business which is the point at which your business costs are equal to your  revenue.

Break-even point helps you understand how much revenue you should generate to be profitable. Include an estimate of your financing needs to start and operate your resort business. Writing the financial plan showcases the financial health of your business to prove that your business is viable to potential investors.

Appendix 

The appendix of your resort business plan includes any additional information that supports the main content of your plan such as financial statements, legal documentation and market research. Put a table of contents to help your plan readers easily find information.

Provide financial documents like tax returns, credit history and financial projections for the first five years of your resort business operations. Provide statistical data about the resort and industry trends.

Include legal documents such as contracts, licenses and permits as well as additional documentation such as brochures and marketing material. Use clear labels and headings for each appendix section and only include essential information.

How long is a resort business plan?

A resort business plan is about 15 to 25 pages long. The length of the business plan varies because of factors such as the size of the business, complexity of the business, purpose of  the plan as well as the stage at which the resort business is at.

A business plan for a resort created for purposes of attracting investments will be longer than one created for internal use as it will require high levels of details.

A complex resort business that serves diverse customer segments will be lengthy because of the many details it will contain.

A start up resort business plan will be longer than that of an already established  because of its comprehensive nature. A resort business plan for a big resort will be longer than that of a small resort.

Is a resort business plan similar to a hotel business plan?

No, a resort business plan is not similar to a hotel business plan because it has different elements from that of a hotel business plan. The steps followed when writing a resort business plan are different from those of a hotel plan.

For example, a resort business plan lacks a products and service description as well as the financial projections section which are included in a hotel business plan.

The business model of a resort is that it offers one package that covers accommodation, drinks, meals and activities while the model of a hotel is that guests will pay for meals, drinks and activities separately.

Both a resort and hotel are in the hospitality industry hence their business plans will analyze the same industry. 

Who Writes a Resort Business Plan? 

Companies offering business plan writing services write resort business plans. Through business plan consultation, they offer strategic advice to help you change your resort  business idea into a viable business venture.

Business plan writing companies provide business proposal writing services to effectively communicate the value proposition of your products and services. They have business plan creators who help organize your thoughts and will create a resort business plan  that aligns with your business goals.

Business plan writing companies will develop your resort business plan so that it is up to date with market changes and continues to meet your needs.

What is the Cost of a Resort Business lan?

The cost of a resort business plan is between $ 2000 to $ 25000. How much a business plan costs varies with factors such as the length of the plan, size of the business, turnaround time and experience of the plan writer. The longer the resort business plan, the higher the cost.

A  plan for a big resort business will cost more than that of a smaller business because it will have many details. A highly experienced business plan writer will charge more than a less experienced one.